A new concept for an accelerator-driven transmutation system is described. The central feature of the concept is generation of intense fluxes of thermal neutrons. In the system all long-lived radionuclides comprising high-level nuclear waste can be transmuted efficiently. Transmutation takes place in a unique, low material inventory environment. Presently two principal areas are being investigated for application of the concept. The first is associated with cleanup of defense high-level waste at DOE sites such as Hanford. The second, longer term area involves production of electric power using a coupled accelerator-multiplying blanket system. This system would utilize natural thorium or uranium and would transmute long-lived components of high-level waste concurrently during operation.